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Sunday, January 20, 2013 - Page updated at 07:30 p.m.
Investors pour money back into stock funds
Stock mutual funds in the U.S. attracted $14.8 billion in net new money in the week ending Jan. 9, the most since at least 2007, as investors returned to domestic equities.
Funds that invest in U.S. companies took in $8 billion and international stock funds drew $6.8 billion that week, said the Investment Company Institute in Washington, D.C.
Deposits for all long-term mutual funds, $27.5 billion, were the highest in weekly records going back to the start of 2007.
The week’s equity flows were extraordinary for the industry, said Robert Reynolds, chief executive of Boston-based Putnam Investments.
Investors have been avoiding domestic stock funds since the 2008 financial crisis.
Meanwhile, the Standard & Poors 500 index more than doubled since reaching a 12-year low in March 2009.
Money instead flowed to bond funds, which were perceived as safer.
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